1. Using General Ledger
  2. Enter Foreign Currency Journals

Enter Foreign Currency Journals

This example demonstrates how to create a journal entry in a foreign currency.

Your company, InFusion America, has purchased a new truck from a company located in the United Kingdom. The price is in British pounds (GBP) and your ledger currency is United States dollars (USD). When the cost was booked in purchasing, the freight costs weren't included. You must enter a manual journal entry for the missing freight costs.

Follow these steps to enter a manual journal entry using a foreign currency. A currency is classified as foreign if it isn't your ledger currency or a reporting currency you're using with the journal or subledger level reporting currency functionality.

Entering a Foreign Currency Journal

  1. Navigate to the Manage Journals page and select the Create Journal task.

  2. Complete the fields, as shown in this table.

    Field

    Value

    Batch Name

    UK Sales Adjustment

    Batch Description

    Freight costs on purchase of a truck

    Journal Name

    UK Sales Adjustment

    Journal Description

    Freight costs on purchase of a truck

    Category

    Adjustment

    Currency

    GBP

    Conversion Rate Type

    User

    Conversion Rate

    1.59

    Debit Account

    Your purchase account

    Debit Amount

    500

    Credit Account

    Your payables account

    Credit Amount

    -500

  3. Click Post.

    The application saves, completes, and posts the entry.

    Note: In this example, the conversion rate type of User was selected, which requires you to enter the conversion rate. Other conversion rate types are Spot, Corporate, or user-defined. These other conversion rate types can automatically enter the conversion rate based on the data in the daily rates tables and the conversion date. Select a conversion date within the accounting period that you defined for the journal entry. The conversion date field lets you select other dates to use a different daily rate. The default conversion date is equal to the journal accounting date.